Vivek Aggarwal Managing Director, MP Road Dev. Corporation Bhopal (M.P.) PPP Cell in Directorate of Institutional Finance Cabinet Committee on PPP constituted under Chairmanship of Hon’ble Chief Minister VGF as well as non VGF models followed for various sectors. MP Infrastructure Investment Fund Board ◦ Estabished for support of unviable infra projects ◦ VGF contributon of GoMP released through MPIIFB Portfolio Number of Projects Cost of Projects (In Rs.) Cost of Projects (In Billion dollar) 223 33942.83 6.7886 Sector-Wise Summary Sector Number Cost Education 4 651.2 Energy 4 552.72 Health 3 1010.64 Industry 8 925.75 IT 3 263 162 25585 Sports 2 1600 Tourism 6 177 Transport 4 1389.88 22 1079.14 Warehousing and Logistics 3 628.5 Dairy 2 80 Road Urban 5 MP was known for bad roads and poor maintenance Improper design based on traditional approach Budget driven construction methodology in place of demand driven Poor fund flow for projects – low Budget outlay Result:- Poor Connectivity, low industrial investment, sluggish business growth. MP Road Development Corporation Ltd. Incorporated in July 2004. MPRDC made the successor/assignee of MPRSNN; all projects of MPRSNN were domained in MPRDC Notified as “Highway Authority” for State Highways under Madhya Pradesh Rajmarg Adhiniyam, 2004 (No.11 of 2005) Chief Minister heads the Board of Directors with Chief Secretary as Vice Chairperson To act as a State Highway Authority. To upgrade, construct and strengthen the total length of State Highways. To develop projects in the State on public private partnership basis. Viability Gap Funding. Premium Concession Fee. Independent Engineer. Financial Closure. Appointed Day. Concession Period. User Fees. Commercial Operation Date. Schedule of standards and specifications. 9 Invite private investment by providing grant/ premium to/by the concessionaire on competitive bidding Second Choice Public Private Partnership (First Choice) Contract Scheme Build – Operate – Transfer Scheme. ADB OMT State Budget BOT (Toll) BOT BOT (Toll Deemed (Annuity) + Annuity) Shadow S. No Details No. of Roads Length (in km.) Cost (` in crores) 1 BOT Projects Completed SH 24 2600 4581 2 BOT (Toll+Annuity )Projects Completed SH 5 203 358 3 BOT Projects Completed National Highways 1 108 314 4 BOT Projects In Progress SH 13 971 1927 5 BOT (Toll+Annuity )Projects In Progress SH 18 817 1795 6 BOT Projects In Progress National Highways 7 567 4199 7 BOT Projects Proposed SH 6 90 479 8 BOT (Toll+Annuity )Projects In Progress SH 9 827 1827 9 BOT Projects In Progress National Highways 4 768 4624 10 Annuity (MDR) 69 2257 3791 11 OMT 4 283 45 12 24 Border Check Post One Project - 1094 13 17 ROB Group-I One Project - 795 14 18 ROB Group-II One Project - 850 163 9491 26679 Total PPP Projects 12 Pioneer in the field of road sector development through Public Private Partnership in the country. Adopted DBFOT Model of Tendering based on Model Concession Agreement of Planning Commission GOI. First agency in the country to get VGF from GOI. Under VGF scheme of GOI 40 % of project cost is sanctioned to make projects viable. 20% is given by GOI. 20% is given by the State Government. GOI has sanctioned 663.35 Crores VGF for 24 BOT projects of MPRDC. In several Projects MPRDC receives Premium. VGF/Premium is the bidding Criteria. Distance based user fee (Toll). Feasibility study by Feasibility consultant. Financial analysis in-house in MPRDC on the basis of traffic survey & cost estimates . State Level Empowered Committee under the chairmanship of Chief Secretary GOMP approves the proposals of BOT projects. State government accords the administrative approval. Empowered Institution, DEA, GOI sanctions VGF. Two-Stage bidding (RFQ & RFP). Financial closure within 180 days of agreement date. Penalty for delays. Monitoring by Independent engineer. Land acquisition by MPRDC. Utility Shifting by the concessionaire. Expenditure on LA & Utility Shifting is borne by the state government. Fee of Independent engineer is shared by MPRDC & Concessionaire. Hybrid Model of BOT (Toll) & BOT(Annuity). Formulated to increase Viability of the projects which are not viable on pure toll. Toll as a sweetener. Concession Period is kept 15 years including of 2 years of construction. Six Monthly Annuity is quoted by the bidders. Annuity is the bidding criteria. Annuity is the deferred payment over a period of 13 years as per payment schedule defined in Concession Agreement. Incentive for early completion as a bonus along with first annuity. Penalty for delay as a reduction of annuity. Formulated to implement the which are not viable on pure toll or Toll+ Annuity Models. Concession Period is kept 15 years including of 2 years of construction. Six Monthly Annuity is quoted by the bidders. Annuity is the bidding criteria. Annuity is the deferred payment over a period of 13 years as per payment schedule defined in Concession Agreement. Incentive for early completion as a bonus along with first annuity. Penalty for delay as a reduction of annuity. It’s a PPP model. Acts as sweetener to increase the viability of project which are not viable with maximum permissible VGF of 40%. It is given in addition to maximum VGF of 40% with maximum limit of 10%. Deemed shadow Toll is given in lieu of exempted vehicles like Govt. vehicles, Military vehicles, vehicles of MLA etc. This will be contributed by State Government. Proposal of deemed shadow fee model is pending with DEA GOI. Transfer) mode under Public Private partnership. Above roads MPRDC has envisaged to take up roads on OMT (Operate Maintain & are developed by MPRDC through ADB funding/Budgetary Support of the State Government. 14 such roads are identified by MPRDC amongst which 3 roads are awarded on Premium & 1 is under tender stage. Concession Period – Project specific, normally 9-12 years Concessionaire to undertake management, operation & maintenance of Highways Augmentation of facility to be done Construction, monitoring and inspection by Independent Engineer. Concessionaire to pay Concession Fee to the Authority. Concession Fee is the bidding parameter. This fee to increase by 10% per year as compared to the immediately proceeding year. Concessionaire can seek O&M support also. User Fee - pre-decided, increase on the basis of WPI Exemption for non commercial traffic Only Commercial vehicles to pay Fee Escrow mechanism for fund flow. 20 Project of Border Checkposts 24 Border Checkposts Purpose :- • To increase revenue of State Government • To control overloading & damage to state roads • To reduce leakage & corruption •To provide full transparency • Cost Rs. 1150 crores incl 56 crores for LA & Utility Shifting • Rs. 1094 cr borne by Concessionaire, balance by State Border Checkposts Concessionaire to charge service fee per vehicle for construction, O & M Computerized integrated system; online central control at Gwalior & Indore Concession of 4566 days incl construction of 730 days Integrated project for Transport, Commercial tax, Forest, Mandi & Mining deptt Checkposts will serve as facilitation centre also 22 Type of Checkpost are as under, Large Check Posts (9+9 lanes) at 4 locations Medium Check Post (7+7 lanes) at 6 locations Small Check Post (4+4 lanes) at 11 locations Single Side Check Post (3 lanes) at 3 locations Two Central Control Facilities centers at Gwalior & Indore. 23 Road WorksRigid Pavement Traffic Signages type XI Parking & detention Area Building Works Administrative building Godowns Loading & Unloading platform Residential Blocks Operator booths Facility Centre Toilet Blocks Canopy 24 hours Electric & Water Supply 24 SURVEILLANCE CAMERA CENTRAL ALL TRANSACTIONS, VEHICLE PICTURES DIMENSIONS MEASUREMENT EQUIPEMENTS CONTROL FACILITY License Plate Reader Camera Barrier & Traffic Lights Control RFID Reader Lane Traffic Controller Lane Computer WEIGHING CONTROLLER WEIGHBRIDGE Automatic Vehicle Classification System 25 Admin Block Residential Blocks Parking /Detention Area 9+9 lanes Weigh Bridges Parking /Detentio n Area Godowns Facility Centre 26 Checking:- From random vehicles to 100% Waiting Time:- 2–3 Mins instead of 1-2 hours Substantial Revenue Increase Controlling Overloading Convenience to Road users Minimizing Human Intervention/ Discretion Real Time Surveillance under one roof Reduction in Operation Cost of Govt. 27 Project (ROBs/RUBs) 35 ROB’s & RUB’s on existing LC’s of Railway: Railway Share State Cost Total cost Rs. 439.20 crores (45% of TPC) Rs. 537.60 crores (55% of TPC) Rs. 976.80 crores Feasibility Consultant appointed in March 2012. Project of ROB’s is divided in two groups having 17 ROB’s in one group & 18 ROB’s in second group. Survey of alignment & GAD of ROB of Ist group is completed & IInd group is in progress in coordination with railways. Due to delays in approval of GAD & cost ,Group-I is proposed to be taken up in VGF Scheme of Deptt. Of Economic Affairs for 40% grant independently by MPRDC without sharing by Railway. Project (ROBs/RUBs) To improve financial viability of ROB project following rates have been adopted Type of vehicle Car LCV, Minibus Bus Trucks 3 Axles & Multiaxles Rates (in Rs.) 7 17.50 35 42 84 GAD’s, Cost Estimates of Group-I(17 ROB’s) have been prepared & cost in Rs.763.81 crores .In Group-I , GAD of 16 ROB & 2 LHS approved. SLEC has granted approval to group No. I. Project will be implemented through PPP by VGF of 40% and Investment of Concessionaire. The RFQ has been invited for group No. I. GOMP has enacted the Madhya Pradesh Rajmarg Nidhi Adhiniyam 2012 To Provide for the establishment of a Fund for investments in the highways & infrastructure projects of the State. To provide for administration of the said fund. To monitor & supervise the activities financed from the fund & for matters connected therewith or incidental thereto. Corpus of the Fund is 125 Crores (approx.). Executive Committee under the chairmen chief Secretary to administer the fund. The Contribution or Grant or Loan or Advance if specially credited to Fund by the State. All payments of Premium made by the concessionaire to MPRDC. All returns on investments made out of the Fund. Proceeds towards encashment of Performance Security or Bid Security by MPRDC for default of Concessionaires or Bidders. Any other amount authorised for credit to the Fund under the provisions of this Act or rules. Amount already standing as a credit in the accounts of MPRDC pertaining to the heads mentioned above shall form the initial corpus of the fund. For providing Financial Assistance to a Concessionaire on behalf of Authority in respect of a Highway or Infrastructure Projects. For Meeting any Development Cost of Highway or Infrastructure Project. For Defraying the Administrative Expenses of the Executive Committee. For Maintenance and Repair of Highways. For Project Preparation, Pre Tender Activities, Cost towards Utility Shifting ,Land Acquisition. For Payment of charges to Authority for various activities performed under this Act. Project Snapshot – Logistics Park Short Description Setting up Composite Logistics Hub at Powarkheda, Distt. Hoshangabad Implementing Agency MP Agricultural Marketing Board (Mandi Board) Line Department Agriculture Department Location Powarkheda, Distt. Hoshangabad (between NH 69 and Delhi-Mumbai Railway Line next to Powarkheda Rly. Station Project Snapshot – Logistics Park Cont.. Area Concession Period PPP Mode Estimated Cost 115 acres land 33 years, extendable by 15 years DBFOT Rs. 138.50 crs. Project Snapshot – Logistics Park Cont.. • 3 years for minimum facilities (COD) • 7 years for completion Bid Process • 2-Stage • 13 RFQs recd • 12 short-listed Concession awarded to Kesar Logistics, Ahmedabad Bidding Parameter Highest Upfront Premium Construction period Considerations For Determining PIA for logistic hub Cargo originating and consumption clusters Consolidation and distribution centers Location of competing facilities Potential of attracting transshipment cargo Key Findings Major cargo consumption centre in Madhya Pradesh are outside 200 kms of project site except Bhopal Originating clusters within PIA include locations like Mandideep, Budhni, Itarsi, Piparia etc. All are within 100 km from proposed Logistics Hub All consumption centers outside 100 Km radius have presence of competing facilities Service demand and supply gap within these facilities Conclusions PIA area considered restricted to radius of 100 km, though for certain commodities PIA might extent beyond considered radius 43 44 Rail Handling • Rail Terminal • Warehousing • Container Freight Station • Cold Storage • Grain & Horticulture Procurement • Agro & Horticulture Services • Market Information Systems • • Trading & Collective Marketing Container Freight Station Cold Storage Warehousing Trucking Hub Truck Parking Facility Lighting Water & Sewage Management Power Back-up Garbage Management Compost Plant Grain Procurement Negotiable Warehouse Receipts Horticulture Procurement Agro & Horticulture Services 45 Railways Terminal Common Facilities CFS Logistics Hub Modern Bulk Warehouse Ware House Cold Storage Mandi Processing Facility 46 47 The objective here is to empower the farmer by enabling him to sell his produce as and when he needs to, thus generating good remuneration which is only possible by integrating the value chain from Procurement to Logistics under one umbrella. Apart from being one of the first Farm to Fork facility in India with true end to end integration, the social return on investment will be achieved at various levels as highlighted below : State of the art warehousing facility , brings efficiency and reduces wastage Commodity wise state of the art storage facilities Storage Marketing r Procu Value Addition & Process Integration with procurement Better & Higher Prices to stake holders , access to processing and less wastage. End to End Integration with Dedicated Logistics and Transport Infrastructure t emen Storage ting Marke Processing & g & Addition n i s s e Value Proc on Additi Value Procurement t anspor r T & ics Logist Dedicated Marketing Facilities Farmers Negotiable Warehousing Receipts Auction Halls Integrated Whole Sale Market with Auction Hall Process Oriented market design State of the art processing facility Scope of Value Add Services Trucking Hub Integrated storage & processing Units EXIM stuffing and destuffing Inland Container & Bulk Terminal FarmFarm to Fork Integration to Fork Integration Empowering the farmer right to sell when and where to sell 48 Develops Common Infrastructure & Basic Facilities Agency 1 MPWLC Land Sublease & Development Agreement of 32 years Private Player Agency 2 Upfront Payment The Project was successfully closed with Kesar Terminals Ltd. offering approx 14 crore premium to GoMP Engages individual Agencies Upfront premium or Development Charges to private player Agency N Individual Agencies further develop, operate & maintain various components of project 49 51 Short Description Development of Transmission System by construction of 400 KV (DCDS) Transmission Line between Satpura and Astha for evacuation of Power from 2 x 250 MW extension unit at Satpura Thermal Power Station Type of PPP DBFOT (Design - Build - Finance - Operate Transfer) Location Total Length Implementing Authority Satpura (Sarni) to Ashta (via Betul, Hoshangabad, Dewas and Sehore) 240 KMs M P Power Transmission Company Limited, Jabalpur (MPPTCL) Estimated Rs. 282.72 crores cost Financing Without VGF 84.82 crores - Equity 30%: - VGF (35%) (a) GoI (20%) (b) GoMP (15%) - Debt (70%) 197.90 crores ______________ Total Rs.282.72 crores With VGF (maxi.35%) 55.14 crores 56.54 crores 42.41 crores 128.63 crores _____________ Rs.282.72 crores Without VGF, equity IRR low (12.32%) For reasonable IRR (15 - 16%), 35% VGF required Actual Financing Means: • Equity : 67.48 crs • VGF GoI : 56.54 crs • Debt : 158.68 crs • Total : 282.70 crs GoMP to provide VGF Rs. 42.41 crs. @15% of cost (O&M support) in 15 equal quarterly instalments; will add to revenue stream for repayment Financing By private partner Arrangement Equity IRR Based on 25 years of concession (including 15 months construction) -Without VGF 12.32 % - With VGF (35%) 15.50% NPV of revenue stream Rs. 255.71 crores (@10%) Description • Evacuation of Power from 2x250 MW Unit at Satpura by constructing 400 KV SatpuraAstha line • Scope includes performance and execution of: – – – – – – – Design Engineering Financing Procurement Construction Completion O & M and Transfer Justification • 2 new units 2x250 MW are being installed at for Project Satpura • Load flow studies establish need for construction of 400 KV DCDS Transmission Line from Satpura to Ashta • Transmission Lines, being capital intensive, need substantial funds • In view of line necessity and paucity of funds, it is prudent to develop the same through PPP Concessio 25 years (incl 15 months construction) n Period Provision for 10 yrs extension Bid Two-stage (RFQ + RFP) Process RFQ Criteria 1. Financial capacity : • Net worth Rs. 71.00 crores 2. Technical capacity: • Over the past 5 years :- paid for / received payments, for construction of eligible projects paid for development of eligible project Cat-I and/or Cat-II collected and appropriated revenues from Eligible Projects in Cat-I and/or Cat-II Eligible Projects : • Cat-I - Power Sector projects under PPP (weightage 1.45) – (Project cost Rs. 57.00 crores) • Cat-II - Core Sector projects under PPP (weightage 0.85) – (Project cost Rs. 57.00 crores) • Cat-III-Construction experience Power Sector projects (weightage 0.85) (Receipt Rs. 57.00 crores in 5 years) • Cat IV - Construction experience Core Sector projects (weightage 0.45) (Receipt Rs. 57.00 crores in 5 years) Threshold Technical Capacity : Rs. 566.00 crores Bidding Lowest Grant (VGF) / Highest Premium Parameter - Premium (to be quoted in terms of percent of Unitary Charge i.e. percent reduction in Unitary Charge) Bid Security Performance Security Rs. 3.00 crores Rs. 11.00 crores (3.89 %) Revenue Stream (i) Monthly Fee (“Unitary Charge") (ii) 20% of actual wheeling charges (additional revenue) for transmission for other parties, on spare capacity availability (80% of additional revenue for Authority), and (iii) 75% Revenue from Advertisement on poles Fixed by Authority, with MPERC approval User Charge Rs. 3.15 crores / month Unitary Charge for 1st year Reduced by 3% and revised to reflect 30% of WPI Annual variation Charge Revision • Project has been awarded to M/s Kalpataru Power Transmission Ltd., Gandhinagar, Gujarat . • VGF : Rs. 60.75 Cr. • Completion period: 15 months (460 days) from the Appointed date/Financial Closure. 62 S N Project PPP Implementing Type Agency 1 ADB Pilot - 24x7 and NRW Water reduction OMT 2 ADB Pilot - 24x7 and NRW Water reduction Cost Status Indore MC 13.94 Bidding OMT Bhopal MC 10.96 Bidding 3 Bus stops for city service. 200 sq. ft. advt per stop (100 nos) BOOT Bhopal MC 2.25 Completed 4 Procurement & Operation of Modern Low floor buses for Indore city (111 buses on 15 routes. 5 operators selected.) BOT Indore MC 59.75 Completed 5 Toilets with advt rights (36) BOOT Bhopal MC 7 .00 Completed S N Project PPP Type Implementing Agency Cost Status 6 Procurement & Operation of Modern Low floor buses for Bhopal city JNNURM sanction of GoI. 50:20:30 funding of GoI, GoMP, ULB. 110 buses on 6 routes BOT Bhopal MC 85 Completed 7 Foot Over Bridges BOT N P P Rau 2.12 Construction 8 Commercial Cplx construction 1.29 acres and BOOT O&M of Bus terminal 9 Water supply augmentation and 24x7 supply BOT Khandwa MC 105 Construction 10 Multi-Level Parking at Indore (7 sites) BOOT Indore MC 56 Construction Rewa MC 20.46 Construction S N Project PPP Implementing Type Agency 11 Water supply augmentation and 24x7 supply Rs. 15.4/KL BOT 12 MLP at Old Bus Stand Kampoo (731.25 Sq Mts and 2027.96 Sq Mts) IIPDF approved BOOT Gwalior M C 18.55 Pipeline 13 Bus Terminals (3) IIPDF approved BOOT Bhopal M C 43.6 Pipeline 14 Multi Level Parking at New Mkt BOT Bhopal M C 51 Pipeline 15 Multi Level Parking at M.P. Nagar BOT Bhopal M C 38.67 Pipeline NPP Shivpuri Cost Status 65 Construction S N Project PPP Type 16 Commercial Complex and Office of Municipal Corporation BOT 17 MLP In front of Nigam Shopping Complex Daulat Ganj (300.00 Sq Mts) Implementing Cost Status Dewas MC 45 Pipeline BOOT Gwalior MC 8.2 Pipeline 18 Reduction of Non-Revenue Water and Improvement of Water Supply Services in Bhopal BOT Bhopal MC 415 Pipeline 19 Hospital Project at Old Nigam Work Shop, Dholi Bua ka Pull (2330.60 Sq Mts) BOOT Gwalior MC 13.64 Pipeline 20 ADB Pilot - 24x7 and NRW Water reduction OMT Gwalior MC 26.87 Pipeline Agency S N Project PPP Type Implementing Agency 21 Commercial Complex at Nagar Nigam Workshop on 0.81 ha BOT Jabalpur MC 22 Commercial Complex at Bhais Khana on 0.4 ha BOT Satna MC 16 Pipeline 23 Parking Cum Commercial at Gandhi Mkt, Maharaj Bada for 300 cars, 252 shops relocation. (5,228 Sq. Mt.) BOOT Gwalior MC 100 Pipeline Cost Status 31.52 Pipeline 67 68